Dáil Éireann debate -
Tuesday, 16 Nov 1999

Vol. 510 No. 6

Written Answers. - Social Welfare Benefits.

Brian O'Shea

Question:

333 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to allow people who have worked from leaving school until age 55 to have unemployment benefit available to them from age 55 to 65; and if he will make a statement on the matter. [23414/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

Unemployment benefit is a weekly payment made to insured persons who are out of work. To qualify, claimants must satisfy a number of conditions, amongst which is a requirement that they be available for and genuinely seeking work. Unemployment benefit is generally payable for a maximum period of 15 months – 390 days.

The Deputy's proposal would effectively mean the introduction of an insurance based retirement scheme for persons aged 55 and above. There are no plans to introduce such a scheme.

Jim O'Keeffe

Question:

334 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the different rates of payment of child dependant allowance; the plans, if any, he has to increase these to the same rate; and the estimated cost involved. [23472/99]

Jim O'Keeffe

Question:

336 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs if he intends to phase out child dependant allowances; and the proposals, if any, he has to replace the allowances. [23474/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

I propose to take Questions Nos. 334 and 336 together.

The rates of child dependant allowances payable to social welfare recipients are set out in tabular form below. As will be seen, there are currently three different rates of CDAs payable to social welfare recipients. The reasons for this are largely historical. In line with a recommendation made by the Commission on Social Welfare, the rates were rationalised with the result that the number of different rates has been reduced from 36 to the current three. Further rationalisation would be extremely costly: the cost of paying all child dependant allowances at the highest rate currently paid is estimated to be in the region of £48 million.

The Deputy will be aware that the loss of child dependant allowances by social welfare recipients on taking up employment can act as a disincentive to taking up available work opportunities. This problem was highlighted in various reports, most notably the report of the expert working group on integrating tax and social welfare.

The policy direction followed by this Government has therefore been to concentrate resources for child income support on child benefit. Unlike child dependant allowances, child benefit does not contribute to poverty traps or work disincentives, as it is a universal payment which is not subject to a means test.

The value of the child benefit scheme as an effective mechanism for the provision of child income support is reflected in the substantial investment which the Government makes in the scheme, at a full year cost of around £475 million per annum. The last budget provided for increases in child benefit of £3 per month for each of the first two children in a family and £4 per month for the third and subsequent children. This brought the monthly rates payable from September 1999 up to £34.50 and £46 respectively.

Any further changes is a matter for consideration in a budget context. Following is the table:

Maximum Rates of Child Dependant Allowances

A.	Unemployment Benefit
	Unemployment Assistance
	Health and Safety Benefit
	Supplementary Welfare Allowance
	Carers Allowance
	Disability Benefit
	Disability Allowance
	Blind Person's Pension
	Occupational Injuries Benefits
	Pre-Retirement Allowance
	Old Age (Non-Contributory) Pension	£13.20
B.	One-Parent Family Payment
	Invalidity/Disability Pension
	Retirement Pension
	Old Age (Contributory) Pension	£15.20
C.	Widow's/Widower's (Contributory)
	Death Benefits (Survivor's Benefits)
	Deserted Wife's Benefit	£17.00